Morgan Stanley: The Metaverse is the Next Big Investment Scheme


On Thursday, Investment Bank, Morgan Stanley issued a note to its investors on the Metaverse Concept.

The Bank stated that, Metaverse was now the next big investment theme. And noted that some companies embracing the concept, were already reaping the benefits.

The letter that categorically outlined the Bank’s position on this concept, could have possibly been motivated by Meta’s recent activities.

The ‘Metaverse’ is at the Banking Hall

Though software companies like Microsoft and Meta have shown interest in this alternate conception of reality, it is essential to note that Morgan Stanley is the first among the big banks.

Morgan Stanley is one of the largest investment banks and a global leader in various other sectors. The Bank, which has excelled in the area of finance, has also made strides in sustainable solutions and climate change.

And right now, it seems that the Bank is wiggling its antennae through the walls of the Metaverse, as was evident in the letter on Thursday about the Metaverse Concept.

The Metaverse is a decentralized virtual world that revolves around the creation of an alternate universe. In this universe, individuals get to model images and ideas into whatever they want to be while performing actual life tasks such as gaming and buying N.F.Ts.

Morgan Stanley’s equity strategist, Edward Stanley, appreciated this concept in the note by saying:

“It can fundamentally change the medium through which we socialize with others.”

Undoubtedly, this note by Morgan Stanley Investment Bank has stirred the pot. As many know and understand, banks don’t speak unless the narrative involves money. And only reach out to investors when it involves ‘Big Money’.

It is expected that even the outside investors will take note of this and start looking for ways to get their money into the Metaverse before other multinationals come in.

Sharing the Cake

The banks’ strategist observed that several companies had built their own versions of the Metaverse this year. Some of which were already thriving with users and financial returns.

“News flow around the metaverse concept has been high and companies are embracing it in growing numbers,” he said. “Of any major theme, companies and analysts have greater interest in the metaverse than any other theme at present.”

On the companies that could benefit from the Metaverse concept, he mentioned tech companies and gaming stocks. To give an example, Roblox, which is currently moving on the trend.

But on the flip side, the strategist believes that a ‘true’ metaverse will only be possible through interoperability; when all these companies find a way to connect and allow users to enjoy different experiences at the same time.

“This will take many years and cross-company collaboration to allow users to seamlessly move across millions of experiences and take their digital avatars and possessions around with them,” he said.

In conclusion, Morgan Stanley, through its strategist, did observe that most of the Metaverse entrants were companies from the U.S., China, and South Korea.

“Metaverse activity and corporate launches are growing rapidly across a broad spectrum of geographies – from the U.S. to China and South Korea,” he said.